Employers - Real Time Information (RTI)
14 June 2012
In April 2013, HMRC is introducing a new way of reporting PAYE - Real Time Information, or RTI. Most employers will be legally required to use RTI by April 2013 and it will be compulsory for ALL employers by October 2013.
RTI means employers will tell HMRC about PAYE payments at the time they are made, as part of the payroll process, using the appropriate payroll software. Once in place, RTI should reduce the burden of the end of year filing procedures by removing the need for a P35 and P14 returns. It should also simplify the employee starting and leaving processes.
A pilot of RTI is currently running with selected volunteer employers to ensure that the system is well-tested and running smoothly in advance of a national roll-out. Most PAYE software providers, such as SAGE, have updated their software packages to support RTI. Additionally, for those employers with nine or less employees, HMRC will provide free software compatible with RTI.
What can you do now?
- Ensure that your current employee data is accurate, including those employees under the lower earnings limit. You should have FULL names, date of birth and National Insurance Nos.
- Find out if your current payroll software is compatible with RTI and, if not, find an alternative.
- All payroll staff should be well-informed about RTI so that you are ready from April 2013.
If you have any questions or need advice, you can contact Aine, our Payroll Manager, at our Lurgan office on 028 3832 4924 or email@example.com